On gambling industry

Unofficial translation

Footnote. The words “by the organizer of gambling establishment”, “to the organizer of gambling establishment”, “the organizer of gambling establishment”, “by the organizers of gambling establishments”, “the organizer of gambling establishment” “the Organizer of gambling establishment”, shall be replaced in the text by the words “by the organizer of gambling industry”, “to the organizer of gambling industry”, “the organizer of gambling industry”, “by the organizers of gambling industry”, “the organizer of gambling industry”, “the Organizer of gambling industry” by the Law of the Republic of Kazakhstan dated 04.05.2009 No. 157-IV (the order of enforcement see. Art. 2).

This Law regulates the social relations, associated with the activity in the field of gambling industry.

Article 1. The basic definitions, used in this Law

The following basic definitions are used in this Law:
1) hardware-software system - hardware and software means, allowing to automate the complex tasks and ensuring the functioning of electronic information resources and information systems;
2) betting – a risk-based agreement, entered into between the participants or with the organizer of gambling industry, on the outcome of events, involving win, where they do not participate;
3) bookmaker - the gambling establishment, where a bet is concluded on a voluntary basis between the organizer of gambling industry and the participants;
4) legitimizing signs - chips, tokens of the specific denomination, replacing cash, realized through cashiers of gambling establishment and used in gambling establishments to participate in gambling;
5) casino – a gambling establishment, where game tables are used to organize and conduct gambling;
6) cashier of casino or game machine hall – a place in the gambling establishment, specially equipped by organizer of gambling industry, where the services for changing (exchanging) of cash on the legitimizing signs and the legitimation signs for cash shall be provided;
7) gambling – a risk-based agreement, entered into between the participants themselves or with the organizer of gambling industry, on the outcome of events, involving win, where they participate;
7-1) gambler and (or) participant of betting - an individual that participates in a gambling and (or) betting;
8) mandatory reserves - money belonging to the organizer of gambling industry or the applicant on the right of ownership, including those obtained on credit and placed in banks in the Republic of Kazakhstan on the basis of the bank deposit agreement on the terms of the issuance of deposits upon demand (demand deposit) and used by him (her) in accordance with the requirements established by this Law;
9) a game machine - gaming equipment (mechanical, electrical, electronic or other technical equipment), used for the gambling and (or) betting, winning of which is determined at random by the device, located within the body of the gaming equipment, without the participation of the organizer of gambling industry or its employees;
10) game machine hall – a gambling establishment, where only game machines are used to organize and conduct of gambling;
11) gambling industry - entrepreneurial activities, related to the organization and conduct of gambling and (or) betting;
12) the organizer of gambling industry – a legal entity, carrying out the organization and conduct of gambling and (or) betting in accordance with the requirements, established by the legislation of the Republic of Kazakhstan;
13) the authorized body in the field of gambling (hereinafter - the authorized body) - a state body, determined by the Government of the Republic of Kazakhstan, enforcing the state policy and control in the gambling industry;
14) gaming equipment - a device or devices, designed and used to carry out gambling and (or) betting;
15) gambling establishment - building, room, construction, where in accordance with the requirements established by this Law, gambling and (or) betting which entail winning are conducted;
16) gaming table - gaming equipment, used to conduct gambling involving a player (s) and one representative of the casino;
17) online casinos - gambling establishment that uses a hardware-software complex, located on the territory of the Republic of Kazakhstan and implementing the possibility of the organization and conduct of gambling in real time in single player mode and in multiplayer mode, and involving retrieving the winnings;
17-1) the applicant - a legal entity, applying to the authorized body for issuance of a license to engage in activities in the gambling industry in the Republic of Kazakhstan;
17-2) bets - the amount of money, transferred by participant of gambling and (or) betting to the organizer of gambling, and is the main condition of participation in gambling and (or) betting in accordance with the rules, established by the organizer of gambling;
18) betting house - gambling establishment, where a bet between the participants with the mediation of the organizer of gambling is concluded;
19) cashier of betting houses or bookmaker - a place where, through the hardware-software complex, receipt (accounting) of rates and payouts are made;
19-1) electronic cashier of betting house or bookmaker - information system, through which the receipt (accounting) of rates and payouts are made with the use of information and communication networks;
20)
is excluded by the Law of the Republic of Kazakhstan dated 04.05.2009 No. 157-IV (the order of enforcement see Art. 2);
21) winning - property benefits in the form of money or other property, including property rights, subject to mandatory payment or transfer to the participant of gambling and (or) betting upon the occurrence of the result of gambling and (or) betting, provided in the rules, established by the organizer of gambling. Footnote. Article 1, as amended by the Laws of the Republic of Kazakhstan dated 04.05.2009 No. 157-IV (the order of enforcement see Art. 2); dated 10.07.2012 No. 36-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 2. Legislation of the Republic of Kazakhstan on gambling industry

1. Legislation of the Republic of Kazakhstan on gambling industry is based on the Constitution of the Republic of Kazakhstan and consists of this Law and other regulatory legal acts of the Republic of Kazakhstan.
2. If an international treaty ratified by the Republic of Kazakhstan provides rules other than those contained in this Law, the rules of the international treaty shall apply.

Article 2. Legislation of the Republic of Kazakhstan on gambling industry

1. Legislation of the Republic of Kazakhstan on gambling industry is based on the Constitution of the Republic of Kazakhstan and consists of this Law and other regulatory legal acts of the Republic of Kazakhstan.
2. If an international treaty ratified by the Republic of Kazakhstan provides rules other than those contained in this Law, the rules of the international treaty shall apply.

Article 3. Scope of the Law

1. This Law regulates the legal relations:
1) associated with the peculiarities of the legal status and activities of the organizers of gambling industry;
2) arising between the organizer of gambling industry and common participants of gambling and (or) betting during the game and (or) betting;
3) arising between the organizer of gambling industry and by the authorized body.
2. This Law shall not apply to the organization and lottery conducting, as well as activities related to the provision of services with the use of game machines without a win, conducting of sports events, including bowling (skittle alley), karting, billiards. Footnote. Article 3, as amended by the Law of the Republic of Kazakhstan dated 04.05.2009 No. 157-IV (the order of enforcement see Art. 2).

Article 4. Basic principles of carrying out activities in the field of gambling industry

The basic principles of carrying out activities in the field of gambling industry are:
1) protection of the rights and legitimate interests of participants of gambling industry;
2) ensuring the legality of its activities by the organizers of gambling industry.

Article 5. State regulation in the field of gambling industry

1. State regulation of activities and control in the gambling industry of the Republic of Kazakhstan shall be exercised by the President of Republic of Kazakhstan, the Government of the Republic of Kazakhstan, the authorized body and other state bodies within their competence.
2. The forms of state regulation of activities in the field of gambling industry are:
1) determination of the order of carrying out activities in the field of gambling industry;
2) implementation of the licensing of activities in the field of gambling industry in the Republic of Kazakhstan;
3) implementation of state control over the activities in the field of gambling industry. Footnote. Article 5, as amended by the Law of the Republic of Kazakhstan dated 05.07.2011 No. 452-IV (shall be enforced from 13.10.2011).

Article 6. Types of activities in the field of gambling industry

1. The following types of activities are carried out in the Republic of Kazakhstan in the field of gambling industry:
1) casino;
2) game machine hall;
3) bookmaker;
4) betting house.
2. The following activities shall be prohibited in the territory of the Republic of Kazakhstan:
1) carrying out the types of activities in the field of gambling industry, not provided by paragraph 1 of this Article;
2) activities of online casinos;
3) organization of gambling and (or) betting, provided the acceptance of bets in the form of other property, except money;
4) installation and use of game machines for entrepreneurial purposes, except for the places, provided by paragraph 1 of Article 11 of this Law. Footnote. Article 6, as amended by the Law of the Republic of Kazakhstan dated 04.05.2009 No. 157-IV (the order of enforcement see Art. 2).

Article 7. Competence of the Government of the Republic of Kazakhstan

The Government of the Republic of Kazakhstan shall develop the main directions of the state policy in the field of gambling industry, as well as perform other functions, assigned to it by the Constitution, the Laws of the Republic of Kazakhstan and the acts of the President of the Republic of Kazakhstan. Footnote. Article 7 is in the wording of the Law of the Republic of Kazakhstan dated 04.05.2009 No. 157-IV (the order of enforcement see Art. 2); as amended by the Laws of the Republic of Kazakhstan dated 05.07.2011 No. 452-IV (shall be enforced from 13.10.2011); dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 8. Competence of the authorized body and other state bodies

1. The authorized body shall:
1) implement the state policy in the field of gambling industry;
2) monitor the compliance of the organizers of gambling industry with the legislation of the Republic of Kazakhstan on gambling industry, as well as compliance with the legislation of the Republic of Kazakhstan concerning counteraction to legalization (laundering) of proceeds from crime and financing of terrorism;
3)
is excluded by the Law of the Republic of Kazakhstan dated 13.01.2014 No. 159-V (shall be enforced upon expiry of ten calendar days after its first official publication);
4) develop and approve a list and forms of documents, proving the compliance of the organizer of gambling industry with the qualification requirements set forth in Article 13 of this Law;
5) issue a license to engage in activities in the field of gambling industry in the Republic of Kazakhstan;
6) maintain an electronic register of the licensor;
7) develop and approve the forms of mandatory departmental reports, checklists, risk assessment criteria, semi audit plans in accordance with the Law of the Republic of Kazakhstan “On State Control and Supervision in the Republic of Kazakhstan”;
8) perform other functions under this Law, other laws of the Republic of Kazakhstan, the acts of the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan.
2. Other state bodies shall carry out state regulation of activities in the field of gambling industry within their competence, established by the legislative acts of the Republic of Kazakhstan. Footnote. Article 8, as amended by the Laws of the Republic of Kazakhstan dated 17.07.2009 No. 188 (the order of enforcement see Art. 2); dated 28.08.2009 No. 192-IV (shall be enforced from 08.03.2010); dated 19.03.2010 No. 258-IV; dated 15.07.2010 No. 337-IV (the order of enforcement see Art. 2); dated 06.01.2011 No. 378-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 05.07.2011 No. 452-IV (shall be enforced from 13.10.2011); dated 10.07.2012 No. 36-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 13.01.2014 No. 159-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 10.06.2014 No. 206-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 9. Licensing of the activities in the field of gambling industry

1. Licensing of the activities in the field of gambling industry shall be carried out in accordance with this Law and the legislation of the Republic of Kazakhstan on permits and notifications.
2. Activities in the field of gambling industry shall be carried out based on the licenses issued to the applicant, for each gambling establishment for a period of ten years.
3. The amount, the order of calculation and payment of the license fee shall be determined in accordance with the tax legislation of the Republic of Kazakhstan.
4. Data on the licenses shall be entered into the electronic register of the licensor. Footnote. Article 9, as amended by the Laws of the Republic of Kazakhstan dated 04.05.2009 No. 157-IV (the order of enforcement see Art. 2); dated 15.07.2010 No. 337-IV (the order of enforcement see Art. 2); dated 16.05.2014 No. 203-V (shall be enforced upon expiry of six months after the date of its first official publication).

Article 10. Taxation of the organizers of gambling industry and winnings

Taxation of the organizers of gambling industry and winnings shall be carried out in accordance with the tax legislation of the Republic of Kazakhstan.

Article 11. Location area of gambling establishments

1 Casinos and game machine halls are subject to placement in the Almaty region on the coast of Kapshagai reservoir and Shchuchyn district of Akmola region within the territory, defined by the local executive bodies.
2. Placement of casinos and game machine halls in the territory of the Republic of Kazakhstan, with the exception of the territories, referred to in paragraph 1 of this Article shall be prohibited.
3. Gambling establishments, cashiers of betting house or bookmaker shall be located only in non-residential buildings. Their placement in buildings of industrial enterprises and their complexes and other industrial, municipal and warehouse facilities, religious buildings (structures), the buildings of state bodies and institutions, institutions of education, health, and culture, airports, train stations, at the stations and stops of all kinds of public transport of urban and suburban traffic, shall be prohibited.
4. Provision of a building, room or structure for opening the obviously illegal gambling establishment or organization of gambling industry, as well as provision of gaming equipment for carrying out (organization) of clearly illegal gambling industry shall be prohibited. Footnote. Article 11, as amended by the Laws of the Republic of Kazakhstan dated 04.05.2009 No. 157-IV (the order of enforcement see Art. 2); dated 09.11.2011 No. 490-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 12. General requirements to carry out activities in the field of gambling industry

1. A casino must have at least twenty gaming tables.
2. At least fifty game machines shall be installed in the hall of game machines.
3. Each game machine must meet the requirements, set out in respect of the relevant gambling equipment by the legislation of the Republic of Kazakhstan on technical regulation.
4. Payment of winnings to participants of gambling and (or) betting shall be made by the organizer of gambling industry on the basis of the presented identity document, in the amount and timing that are provided by the rules of ongoing gambling and (or) betting, but not later than three calendar days from the date of summing the results of this gambling and (or) betting.
5. Installation of game machines or their parts in walls, windows and doors in the casino and in game machine halls are prohibited.
6. Percentage of winning, technologically embodied in the gaming machine must not be less than ninety percent.
7. Cashiers and gaming space of gambling establishments must be equipped with a video recording system that stores the recorded information for at least seven days, and fixing the actions of all members of gambling and (or) betting.
8. In case of insufficient of cash on hand or on the account of the organizer of gambling industry to pay the winning to the participant of gambling and (or) betting, the organizer of gambling is obliged to use the mandatory reserves for the remaining amount, taking into account the provisions laid down in Article 14 of this Law.
9. The organizer of gambling industry, carrying out activities of bookmaker or betting house, is obliged by the hardware-software complex and gaming equipment to implement and enforce the reception, unified account of the total amount of bets made, processing of bets of participants of betting and payment of winning.
10. The organizer of gambling industry, carrying out the activities of bookmaker, determines independently events, the outcome of which shall be a bet.
11. The organizer of gambling industry, carrying out the activities of betting house is obliged to establish gaming equipment that allows participants to observe the development of betting and outcome of an event, for the result of which they made bet.
12. The organizer of gambling industry, carrying out the activities of bookmaker or betting house shall accept bets through the appropriate cashiers of betting houses or bookmaker, and (or) electronic cashiers of betting houses or bookmaker.
13. The organizers of gambling industry shall comply with the requirements, established by the legislation of the Republic of Kazakhstan concerning counteraction to legalization (laundering) of proceeds from crime and terrorist financing. Footnote. Article 12, as amended by the Laws of the Republic of Kazakhstan dated 04.05.2009 No. 157-IV (the order of enforcement see Art. 2); dated 28.08.2009 No. 192-IV (shall be enforced from 08.03.2010); dated 26.11.2010 No. 356-IV (shall be enforced from 01.01.2011); dated 10.06.2014 No. 206-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Note of the RCLI! Article 13 shall be amended by the Law of the Republic of Kazakhstan dated 16.05.2014 No. 203-V (shall be enforced upon expiry of six months after the date of its first official publication).

Article 13. Qualification requirements to applicants for licenses

1. The applicants for a license shall meet the following qualification requirements:
1) the presence of the building (part of the building, structure, construction) for the implementation of activities in the field of gambling on the property rights or other legal basis, corresponding to the sanitary-epidemiological and fire safety standards, established by the legislation of the Republic of Kazakhstan;
2) the presence of gambling equipment on the property right;
3) the presence of contracts with individuals or legal entities that received in accordance with legislation of the Republic of Kazakhstan a license to conduct security activities;
4) the presence of the established rules of the gambling establishment, accepting bets and gambling conducted, and (or) betting on the State and Russian languages;
5) the presence of samples and nominations, used legitimizing symbols in State and Russian languages;
6) the presence of security of the applicant to every gambling establishment in the form of mandatory reserves, defined in this Law (in the monthly calculation indices, provided by the Law on the republican budget for the corresponding financial year) for the following activities in the field of gambling industry:
casinos and game machine halls - in the amount of 25,000;
bookmakers - in the amount of 20,000;
betting houses - in the amount of 5000.
2. For each license to engage in activities in the field of gambling industry in the Republic of Kazakhstan, the applicant shall submit to the authorized body (the licensor) the documents, confirming its compliance with the requirements of this Law. Footnote. Article 13 is in the wording of the Law of the Republic of Kazakhstan dated 04.05.2009 No. 157-IV (the order of enforcement see Art. 2); as amended by the Law of the Republic of Kazakhstan dated 16.05.2014 No. 203-V (shall be enforced upon expiry of six months after its first official publication).

Article 14. Mandatory reserves

1. Mandatory reserves shall be formed by applicants, applying for a license for the right to engage in activities in the field of gambling industry, in the amounts established by this Law for each type of activity at each gambling establishment and shall be placed in banks in the Republic of Kazakhstan under the terms of the deposit under the contract, concluded by the bank with the client, under the condition of issuance of deposits upon demand (demand deposit).
2. The applicant for a license shall provide the placement of the mandatory reserves in the manner and under the conditions prescribed by this Law.
3.
Is excluded by the Law of the Republic of Kazakhstan dated 04.05.2009 No. 157-IV (the order of enforcement see Art. 2).
4. Mandatory reserves may be used exclusively for the purpose of fulfillment of the obligations of the organizer of gambling industry to pay the winning to the participants of gambling and (or) betting, and only under the condition of insufficient funds in the accounts and in cashier of the organizer of gambling, except in cases, stipulated by the legislation of the Republic of Kazakhstan on enforcement proceedings and the status of enforcement agent.
5. In the case, if the amount of the mandatory reserves would be less than the amount prescribed by this Law, the organizer of the gambling industry shall, within three working days from the date of such reduction, replenish the mandatory reserves to the amount, established by this Law for each type of licensed activity.
6. The organizer of gambling industry shall submit a certificate to the authorized body on the availability and flow of money in bank accounts, opened in conclusion of the contract of bank deposit, at least once in six months. Footnote. Article 14, as amended by the Laws of the Republic of Kazakhstan dated 04.05.2009 No. 157-IV (the order of enforcement see Art. 2); dated 15.01.2014 No. 164-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 15. The order and features of attending gambling establishments

1. Participation in gambling and (or) betting of the citizens of the Republic of Kazakhstan under the age of twenty-one years is prohibited.
2. Rules of the gambling establishment, accepting of bets and conducted gambling and (or) betting on the State and Russian languages ??must be installed in gambling establishments in a prominent place to examine them the participants of gambling and (or) betting.
3. The organizer of gambling industry is entitled to:
1) place restrictions on the free use of the gambling establishment, not inconsistent with the legislative acts of the Republic of Kazakhstan;
2) disallow to the gambling of the persons that violate the rules of the gambling establishment, acceptance of bets and gambling conducted, and (or) betting. Footnote. Article 15, as amended by the Law of the Republic of Kazakhstan dated 04.05.2009 No. 157-IV (the order of enforcement see Art. 2).

Article 16. Responsibility for violation of the legislation of the Republic of Kazakhstan on gambling industry

Violation of the legislation of the Republic of Kazakhstan on gambling industry entails liability under the laws of the Republic of Kazakhstan.

Article 16-1. State control in the field of gambling industry

1. State control in the field of gambling industry shall be carried out in the form of inspections and other forms.
2 The inspection shall be carried out in accordance with the Law of the Republic of Kazakhstan “On State Control and Supervision in the Republic of Kazakhstan”. Other forms of state control shall be carried out in accordance with this Law. Footnote. Article 16-1 is in the wording of the Law of the Republic of Kazakhstan dated 17.07.2009 No. 188 (the order of enforcement see Art. 2); as amended by the Law of the Republic of Kazakhstan dated 06.01.2011 No. 378-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 16-2. The organization of inspection

Footnote. Is excluded by the Law of the Republic of Kazakhstan dated 17.07.2009 No. 188 (the order of enforcement see Art. 2).

Article 16-3. Procedure for inspection

Footnote. Is excluded by the Law of the Republic of Kazakhstan dated 17.07.2009 No. 188 (the order of enforcement see Art. 2).

Article 17. Transitional and final provisions

1. This Law shall come into force from 1 April, 2007.
2. From the date of the enactment of this Law the licenses, issued before 1 April 2007 for the right to engage in activities in the field of gambling industry, shall be terminated.